COJ rates assesment

G

gunman

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Midrand
Been reading the rates stuff. Still have to check the finer points.
Valuation roll will be available for inspection in Feb 2008. municipal manager will let us know in press.
Assessment based on market value of property.
I am not too sure of my calcs…will have to mail COJ but here goes!!
Assessment at 11.53 cents to the rand. Will get a 58% rebate (could be 40% for Midrand) therefore 4.8426 cents to the rand payable
Property valued at 600k = 29055.60/yr
Over 12 months = R2421.30!!!

This is crap!!...if true…need to really kick up a fuss!!:mad:

If anyone can correct my calcs then please do. I will be bloody grateful ( provided the calcs come out to much less than my result!!1)
 
There has been a move to this type of rate system in most cities has there not?
:confused:

Sure rent, but the owner will try and recover the cost f this in the rent. If they cannot, they either finance it themselves or offload the property.
The later being the most likely for the cash strapped.
Lots of downward pressure on the property market lately. Loads actually.
 
Sneeky said:
There has been a move to this type of rate system in most cities has there not?
Click to expand...
It has already been implemented in CT (and there were some disputed valuations there); the rest of the country (or at least Jhb) is only moving to it in the next year.
 
That sort of increase will bankrupt more than a few people.
 
NameOfBeast said:
It has already been implemented in CT (and there were some disputed valuations there); the rest of the country (or at least Jhb) is only moving to it in the next year.
Click to expand...

Its an easy system... all the MonkeyPality needs to do is look at your bond registration to see what you paid for the property. you cant dispute THAT valuation.

:eek:
 
Ricard, but is it not based now on the combined value of the land and the buildings on the land.
I think it was just the property as such in the past with any alterations, increases in value not being taken into account?

Not sure
 
Sneeky said:
Ricard, but is it not based now on the combined value of the land and the buildings on the land.
I think it was just the property as such in the past with any alterations, increases in value not being taken into account?

Not sure
Click to expand...

yes, the old system was just a thumbsuck value of the land.

the New system they have added land, house and improvements and then dont need to valuate the property... just look at the bond documents.

If you add a 20K pool to your property... your Rates in Taxes go up too.
 
Thx Ricard.

gunman said:
Been reading the rates stuff. Still have to check the finer points.
Valuation roll will be available for inspection in Feb 2008. municipal manager will let us know in press.
Assessment based on market value of property.
I am not too sure of my calcs…will have to mail COJ but here goes!!
Assessment at 11.53 cents to the rand. Will get a 58% rebate (could be 40% for Midrand) therefore 4.8426 cents to the rand payable
Property valued at 600k = 29055.60/yr
Over 12 months = R2421.30!!!

This is crap!!...if true…need to really kick up a fuss!!:mad:

If anyone can correct my calcs then please do. I will be bloody grateful ( provided the calcs come out to much less than my result!!1)
Click to expand...

How does this compare with your current rates?
 
gunman said:
Been reading the rates stuff. Still have to check the finer points.
Valuation roll will be available for inspection in Feb 2008. municipal manager will let us know in press.
Assessment based on market value of property.
I am not too sure of my calcs…will have to mail COJ but here goes!!
Assessment at 11.53 cents to the rand. Will get a 58% rebate (could be 40% for Midrand) therefore 4.8426 cents to the rand payable
Property valued at 600k = 29055.60/yr
Over 12 months = R2421.30!!!

This is crap!!...if true…need to really kick up a fuss!!:mad:

If anyone can correct my calcs then please do. I will be bloody grateful ( provided the calcs come out to much less than my result!!1)
Click to expand...


Hmm, not sure on the 11c and 58% rebate, but our land at the moment is R300K or so, and we pay about R300 a month.

So, R600K should then be R600 and not R2400 ?
 
but factor in the value of your buildings on top of the value of the land?
 
Moederloos said:
Hmm, not sure on the 11c and 58% rebate, but our land at the moment is R300K or so, and we pay about R300 a month.

So, R600K should then be R600 and not R2400 ?
Click to expand...

the New system is the market value of your entire property!.. not just land.

House value : R1 000 000 (1 Million)
1000000 x 0.11c = 110 000
-58% = 46 000 (rebate)
Divide by 12 v= 3833 per month

R300000 property will cost R1430 a month in rates alone
 
Last edited:
I seem to have caused a misunderstanding:

I know it includes land and buildings, but if my land is R300K and the house itself is R300K, that makes the R600K in the OP.
So, if R300K NOW costs R300, and I need to pay rates on both land and additions, then in 2008 I will need to pay on R600K, so R600 per month.
 
Doh! :)

Kewl then, if that is the current market value. No shocks.
 
Moederloos said:
I seem to have caused a misunderstanding:

I know it includes land and buildings, but if my land is R300K and the house itself is R300K, that makes the R600K in the OP.
So, if R300K NOW costs R300, and I need to pay rates on both land and additions, then in 2008 I will need to pay on R600K, so R600 per month.
Click to expand...

What would you sell your house for AND get the asking price? THAT is what your rates are based on.
 
Ricard said:
What would you sell your house for AND get the asking price? THAT is what your rates are based on.
Click to expand...

Again, my point is missed.
I am questioning the validity of the OP's calcs.

It makes no difference what my house is worth in reality - just assume it is worth R600K on the market.
If I sold and got R1.2 million, then, based on my calcs, the Rates would be R1200 a month, but the OP would be R4800.

Now, considering the "average house" is R900K (some ABSA article recently), that would make Rates R3600 for the "average" person.

Bugger me if that goes through, because not one person I know socially would be able to afford that.
 
The flaw in your calculations is the value per rand that you pay. The council has said that the value/rand will obviously drop but they havent provided any figures yet. This still has to be decided.

So whereas previously, you paid 11.53 cents per rand value of land value only, now you will pay say 1 cent per rand value of Market value of whole house.

So dont panic until they release the new value / rand.

They have said that theoretically you shouldnt have an increase in rates, unless your land value was seriously undervalued. If that is the case then yes you will pay slightly more.
 
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